Birkenstock Holding Plc nudged its sales forecast higher amid strong demand for its sandals and clogs, and set out plans for a new factory near Dresden to boost production.
Revenue will probably grow 17.5 percent on a constant currency basis in the fiscal year that ends this month, above the 17 percent top end of its previous forecast range, the German shoemaker said Thursday. It projected fourth-quarter sales of at least €520 million ($611 million), slightly ahead of analyst forecasts.
Chief executive officer Oliver Reichert has been looking to capitalise on the brand’s momentum by grabbing market share, as the footwear world struggles with rising tariffs and supply chain snarls. Birkenstock, which makes almost all of its products in Germany, has begun to compensate for those challenges including by raising prices.
It also said it acquired a production site near Dresden for €18 million, part of a plan to scale up manufacturing. The deal is expected to close later this year and the site should be operational by the end of the 2027 fiscal year. Birkenstock is looking for more opportunities to buy factories in the European Union, it said.
The company reiterated its profit-margin forecast for the current fiscal year, despite what it called challenges from exchange rates.
Birkenstock is meeting analysts and investors at its Munich headquarters Thursday, and plans to release full-year results on Dec. 18.
By Tim Loh
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